The fund normally invests at least 80% of its net assets (plus any borrowings for investment purposes) in equities. Any derivatives that provide exposure to the investment focus suggested by the fund’s name, or to one or more market risk factors associated with the investment focus suggested by the fund’s name, are counted (as applicable) toward compliance with the fund’s 80% investment policy.

The fund’s overall goal is to combine a long equity strategy with a derivatives hedging strategy that reduces portfolio volatility and provides protection during equity market downturns.

As part of the long equity strategy, the majority of the fund invests in T. Rowe Price and third-party exchange-traded funds and particularly in the T. Rowe Price U.S. Equity Research ETF (TSPA). TSPA attempts to create a portfolio with similar characteristics to the S&P 500 Stock Index (Index) with the potential to provide excess returns relative to the Index.

The fund may purchase the stocks of companies of any size and invest in any type of equity security, but typically focuses on common stocks of large-cap U.S. companies. The portfolio is typically constructed in a “bottom up” manner, an approach that focuses more on evaluations of individual stocks than on analysis of overall economic trends and market cycles.

Sector allocations are largely the result of the fund’s focus on bottom-up stock selection. At times, the fund may have a significant portion of its assets invested in the same economic sector, such as the information technology sector.

The fund uses a derivatives hedging strategy designed to mitigate tail risk (i.e., the threat of significant losses during an equity market drawdown) and provide strong risk-adjusted returns with lower volatility than the overall equity markets. The positioning within the derivatives overlay will vary based on overall market conditions, the level of current and expected risk, and/or the severity of a current or expected equity market drawdown. The fund may use a variety of derivatives, such as futures, forwards , options, and swaps for a number of purposes, such as for hedging risk or managing certain exposure. Specifically, the fund uses equity options, index futures, and interest rate futures to mitigate tail risk and/or dampen the fund’s overall volatility.

The fund is nondiversified, which means it may invest a greater percentage of its assets in a particular issuer than is permissible for a diversified fund.